Memo

TITLE OF BILL: An act to amend the environmental conservation law, in relation to deposits of refund values for refillable beverage containers

PURPOSE:

To exempt refillable beverage containers.

SUMMARY OF PROVISIONS:

Section 1 subdivision 1, 2, 3, 4, and 5 of section 27-1012 of the environmental conservation law are amended. New subdivision 5-a is added. Subdivision 1 add except for those refund values received for refillable beverage containers. Subdivision 2 add except for payment for refund values on refillable beverage containers. Subdivision 3 add such report shall not include any information pertaining to refillable beverage containers. Subdivision 5 add after dedication of the amount the commissioner of taxation and finance determines is necessary to cover reasonable cost incurred by the department of taxation and finance to implement, administer, and enforce the provisions of this title. Subdivision 5-a is to read: Each deposit initiator who initiates deposits on refillable beverage containers shall file and annual report with the commissioner on a form and in the manner prescribed by the commissioner. The commissioner may require such report be filed electronically. Such report shall include all information the commissioner shall determine appropriate pertaining to deposits for refillable beverage containers, including but not limited to: total deposits initiated; total deposits redeemed; and all unclaimed deposits retained by such deposits initiators.

JUSTIFICATION:

Refillable bottlers are becoming scarcer in New York. This bill will help the last remaining refillable bottlers from having to close their doors. College Club Beverage in Rochester New York has been in business for over 80 years bottling soda in refillable bottles. College Club is a family owned business that relies on their bottles being returned so the the bottles can be sterilized and refilled for their customers. This company has not had to punches new soda bottles in since 1982. Refillable bottlers offer an environmentally sound alternative for those who buy their beverages from the bottler.

Text

STATE OF NEW YORK
________________________________________________________________________
1019--A
2013-2014 Regular Sessions
IN SENATE
(PREFILED)
January 9, 2013
___________

Introduced by Sen. ROBACH -- read twice and ordered printed, and when
printed to be committed to the Committee on Environmental Conservation
-- recommitted to the Committee on Environmental Conservation in
accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the environmental conservation law, in relation to
deposits of refund values for refillable beverage containers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions 1, 2, 3, 4, and 5 of section 27-1012 of the
environmental conservation law, subdivisions 1, 2, 3 and 4 as added by
section 8 of part SS of chapter 59 of the laws of 2009 and subdivision 5
as amended by section 6 of part F of chapter 58 of the laws of 2013, are
amended and a new subdivision 5-a is added to read as follows:
1. Each deposit initiator shall deposit in a refund value account an
amount equal to the refund value initiated under section 27-1005 of this
title which is received with respect to each beverage container sold by
such deposit initiator, EXCEPT FOR THOSE REFUND VALUES RECEIVED FOR
REFILLABLE BEVERAGE CONTAINERS. Such deposit initiator shall hold the
amounts in the refund value account in trust for the state. A refund
value account shall be an interest-bearing account established in a
banking institution located in this state, the deposits in which are
insured by an agency of the federal government. Deposits of such amounts
into the refund value account shall be made not less frequently than
every five business days. All interest, dividends and returns earned on
the refund value account shall be paid directly into said account. The
monies in such accounts shall be kept separate and apart from all other
monies in the possession of the deposit initiator. The commissioner of

EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05005-02-4

S. 1019--A 2

taxation and finance may specify a system of accounts and records to be
maintained with respect to accounts established under this subdivision.
2. Payments of refund values pursuant to section 27-1007 of this
title, EXCEPT FOR PAYMENTS OF REFUND VALUES ON REFILLABLE BEVERAGE
CONTAINERS, shall be paid from each deposit initiator's refund value
account. No other payment or withdrawal from such account may be made
except as prescribed by this section.
3. Each deposit initiator shall file quarterly reports with the
commissioner of taxation and finance on a form and in the manner
prescribed by such commissioner. The commissioner of taxation and
finance may require such reports to be filed electronically. The quar-
terly reports required by this subdivision shall be filed for the quar-
terly periods ending on the last day of May, August, November and Febru-
ary of each year, and each such report shall be filed within twenty days
after the end of the quarterly period covered thereby. Each such report
shall include all information such commissioner shall determine appro-
priate including but not limited to the following information:
a. the balance in the refund value account at the beginning of the
quarter for which the report is prepared;
b. all such deposits credited to the refund value account and all
interest, dividends or returns received on such account, during such
quarter;
c. all withdrawals from the refund value account during such quarter,
including all reimbursements paid pursuant to subdivision two of this
section, all service charges on the account, and all payments made
pursuant to subdivision four of this section; and
d. the balance in the refund value account at the close of such quar-
ter. SUCH REPORT SHALL NOT INCLUDE ANY INFORMATION PERTAINING TO
REFILLABLE BEVERAGE CONTAINERS.
4. a. Quarterly payments. An amount equal to [eighty percent of] the
balance outstanding in the refund value account at the close of each
quarter shall be paid to the commissioner of taxation and finance at the
time the report provided for in subdivision three of this section is
required to be filed. [The commissioner of taxation and finance may
require that the payments be made electronically. The remaining twenty
percent of the balance outstanding at the close of each quarter shall be
the monies of the deposit initiator and may be withdrawn from such
account by the deposit initiator.] If the provisions of this section
with respect to such account have not been fully complied with, each
deposit initiator shall pay to such commissioner at such time, in lieu
of the amount described in the preceding sentence, an amount equal to
the balance which would have been outstanding on such date had such
provisions been fully complied with. The commissioner of taxation and
finance may require that the payments be made electronically.
b. Refund value account shortfall. In the event a deposit initiator
pays out more in refund values than it collects in deposits of refund
values during the course of a quarterly period as described in subdivi-
sion three of this section, the deposit initiator may apply to the
commissioner of taxation and finance for a refund of the amount of such
excess payment of refund values from sources other than the refund value
account, in the manner as provided by the commissioner of taxation and
finance. [A deposit initiator must apply for a refund no later than
twelve months after the due date for filing the quarterly report for the
quarterly period for which the refund claim is made. No interest shall
be payable for any refund paid pursuant to this paragraph.]

S. 1019--A 3

c. Final report. A deposit initiator who ceases to do business in this
state as a deposit initiator shall file a final report and remit payment
of [eighty percent of] all amounts remaining in the refund value account
as of the close of the deposit initiator's last day of business. The
commissioner of taxation and finance may require that the payments be
made electronically. The deposit initiator shall indicate on the report
that it is a "final report". The final report is due to be filed with
payment twenty days after the close of the quarterly period in which the
deposit initiator ceases to do business. In the event the deposit initi-
ator pays out more in refund values than it collects in such final quar-
terly period, the deposit initiator may apply to the commissioner of
taxation and finance for a refund of the amount of such excess payment
of refund values from sources other than the refund value account, in
the manner as provided by the commissioner of taxation and finance.
5. All monies collected or received by the department of taxation and
finance pursuant to this title, AFTER DEDUCTION OF THE AMOUNT THE
COMMISSIONER OF TAXATION AND FINANCE DETERMINES IS NECESSARY TO COVER
REASONABLE COSTS INCURRED BY THE DEPARTMENT OF TAXATION AND FINANCE TO
IMPLEMENT, ADMINISTER, AND ENFORCE THE PROVISIONS OF THIS TITLE, shall
be deposited to the credit of the comptroller with such responsible
banks, banking houses or trust companies as may be designated by the
comptroller. Such deposits shall be kept separate and apart from all
other moneys in the possession of the comptroller. The comptroller shall
require adequate security from all such depositories. Of the total
revenue collected, the comptroller shall retain the amount determined by
the commissioner of taxation and finance to be necessary for refunds out
of which the comptroller must pay any refunds to which a deposit initi-
ator may be entitled. After reserving the amount to pay refunds, the
comptroller must, by the tenth day of each month, pay into the state
treasury to the credit of the general fund the revenue deposited under
this subdivision during the preceding calendar month and remaining to
the comptroller's credit on the last day of that preceding month;
provided, however, that, beginning April first, two thousand thirteen,
and all fiscal years thereafter, fifteen million dollars plus all funds
received from the payments due each fiscal year pursuant to subdivision
four of this section in excess of the amount received from April first,
two thousand twelve through March thirty-first, two thousand thirteen,
shall be deposited to the credit of the environmental protection fund
established pursuant to section ninety-two-s of the state finance law.
5-A. EACH DEPOSIT INITIATOR WHO INITIATES DEPOSITS ON REFILLABLE
BEVERAGE CONTAINERS SHALL FILE AN ANNUAL REPORT WITH THE COMMISSIONER ON
A FORM AND IN THE MANNER PRESCRIBED BY THE COMMISSIONER. THE COMMISSION-
ER MAY REQUIRE SUCH REPORT BE FILED ELECTRONICALLY. SUCH REPORT SHALL
INCLUDE ALL INFORMATION THE COMMISSIONER SHALL DETERMINE APPROPRIATE
PERTAINING TO DEPOSITS FOR REFILLABLE BEVERAGE CONTAINERS, INCLUDING BUT
NOT LIMITED TO: TOTAL DEPOSITS INITIATED; TOTAL DEPOSITS REDEEMED; AND
ALL UNCLAIMED DEPOSITS RETAINED BY SUCH DEPOSIT INITIATOR.
S 2. This act shall take effect immediately.

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